Compliance Framework.
KB Analytical Solutions ensures that QUORUM deployments adhere to the highest standards of regulatory alignment and data handling integrity.
01 // Data Handling
Encryption & Isolation
QUORUM's data handling architecture combines Zero-Knowledge Proof audit records, field-level AES-256-GCM encryption, and per-institution physical storage segmentation. PII fields are encrypted under a two-level key hierarchy (DEK + HSM-derived MEK), enabling key rotation without re-encrypting historical records.
Sanctions screening uses a Ristretto255 VOPRF (Private Information Retrieval) protocol. The screening endpoint learns only that some entity was queried — the name or identifier being checked is never transmitted in cleartext. This satisfies data minimization obligations for sanctions compliance workflows.
02 // Audit Readiness
Cryptographic Audit Evidence
QUORUM's audit architecture resolves the compliance-privacy tension structurally: every decision generates a cryptographic proof of correct computation that is legally sufficient for regulatory review, without requiring long-term raw data retention. Regulators can verify a decision was made correctly through the proof artifact alone.
KZG polynomial proofs provide O(1) inclusion verification for audit entries — a regulator confirms any record's presence in the ledger with two pairing operations against a 48-byte commitment, without retrieving the full audit history. Rényi DP moments accountant produces HSM-signed privacy certificates: a machine-verifiable artifact proving ε/δ differential privacy guarantees for any federated learning round.
03 // Regulatory Alignment
OSFI E-23
Alignment with Canadian model risk management standards for institutional AI and decision systems. Institutional data sovereignty maintained through on-premise deployment and local key custody.
OCC 2011-12
Validation of risk scoring logic and governance controls in line with US Federal Reserve mandates. Shadow evaluation gates ensure model changes are quantified before deployment.
GDPR / CCPA
Native support for data minimization, isolation, and automated Right to be Forgotten (RTBF). ZKP audit records allow compliance verification without raw PII retention.
EU AI Act Art. 86
Causal counterfactual certificates satisfy the right to explanation for automated decisions. Generated at decision time and HSM-signed — not reconstructed after the fact.
FINTRAC
Adverse-action notice obligations satisfied by counterfactual certificates. ISO 20022 native integration with SAR auto-filing. Full decision lineage retained for FINTRAC examination.
OFAC / UN Sanctions
Privacy-preserving sanctions screening via Ristretto255 VOPRF. Screening frequency and results are auditable; the queried entity name is never transmitted in cleartext to the screening service.
04 // Security Principles
Security architecture is built on defense-in-depth, principle of least privilege, cryptographic attestability, and zero-knowledge verification. Signing keys are under institutional custody — QUORUM holds no unilateral signing authority.
05 // Access Controls
Just-in-Time (JIT) administrative access with mandatory FROST threshold co-signature for all production changes. No single operator can modify rule logic, model weights, or override settings unilaterally.
06 // Retention Policies
Configurable log retention windows (3, 5, or 7 years) to satisfy jurisdictional data persistence requirements. ZKP audit records provide compliance evidence without requiring raw event data retention beyond operational windows.
07 // Differential Privacy Accounting
Rényi DP Privacy Certificates
QUORUM's federated learning infrastructure uses a tight Rényi differential privacy (RDP) moments accountant to track privacy budget consumption across all training rounds. After each round, the accountant produces an HSM-signed privacy certificate: a machine-verifiable artifact stating the achieved ε and δ parameters.
This certificate can be presented to regulators as proof that the institution's contribution to federated training did not expose individual-level data beyond the stated privacy budget. It is the first deployable mechanism for proving differential privacy guarantees to regulatory examiners with a cryptographically verifiable artifact rather than a policy assertion.
Institutional Compliance Review
To perform a detailed compliance audit or review our SOC 2 Type II readiness package, please initiate a formal request through the institutional portal.
Request Compliance Package